Is GM going backwards?

"Vince-The Roadside Mechanic" (vincent-becker)
06/06/2014 at 11:53 • Filed to: None

We all know about the GM recall and how it is causing 2.6 million cars to be recalled. Common sense tells us that this is not cheap between the lawsuits and the cost of fixing these parts it might put GM in some financial trouble. When GM was in trouble a while ago they sold or as I say killed brands to try and get some money to help them out. this meant Saab, Hummer, Pontiac, Saturn, and Oldsmobile were killed.

Lets get back to present day, if GM is really in big trouble could this mean that they would kill a brand? We know Holden will be killed soon, but what one of their American brands would they kill?

CHEVROLET

I don't think they would kill Chevy. I mean this is their main brand, their flag ship, what people think about when they hear GM. It would be dumb to kill Chevy no more Corvette, No more Camaro, and no more Sonic.

BUICK

This is their mid-range brand so I suppose it could go but then they would have to make cheaper Cadillacs to fill the gap and we know that is probably not going to happen.

CADILLAC

GM couldn't possibly kill Cadillac it is their direct competitor to the Germans. They are finally a force to be reckon with and who is going to get rid of that.

GMC

If there is one brand that GM could kill it would be GMC. Why? because all their trucks and SUVs are just slightly nicer versions of Chevrolet's trucks and SUVs. It is the same thing GM did not so long ago they made copies of their cars and threw on a badge and raised the price.

Hopefully it doesn't come to GM selling or killing off brands but if it does it will be a sad day for GMC fans (if I am right.)

DISCUSSION (21)

Jayhawk Jake > Vince-The Roadside Mechanic
06/06/2014 at 11:55

None of this is correct.

GM isn't going backwards, they're dealing with an old problem that's come up. It's going to cost a lot, but it's not a sign that they are going backwards and it doesn't mean they're going to kill a brand.

They may end up killing a brand if it's not profitable because they can't take a loss, but as far as I know there aren't any up on the chopping block besides Holden and maybe Opel?

Buick is doing amazingly well in China, so it's going to be around for a while. Cadillac is selling pretty well in the states as far as I know, so it's probably safe.

GMC? GMC isn't going anywhere. GMC isn't around for consumer sales, it's around because they sell a metric crapton of GMC commercial vehicles as fleet sales with a higher profit margin than similar Chevrolet branded hardware.

You are looking at this through the eyes of an auto enthusiast, not a business person. No matter how you twist it or wish the world worked car manufacturing is a business. They won't kill of GMC 'because it's just a slightly nicer Chevy', that doesn't make any sense. They would kill them off if they were just a slightly nicer Chevy that sold at a loss.

-Amateur > Vince-The Roadside Mechanic
06/06/2014 at 11:57

I don't think they'll ever kill off Buick just because that brands makes them so much money. In China alone last year, I think they sold around 800,000 of those puppies! It's also cost effective for them since they leverage the economies of scale as Buick and Opel are like twins in terms of product offerings.

Vince-The Roadside Mechanic > Jayhawk Jake
06/06/2014 at 12:05

But couldn't they kill GMC and make the fleet vehicles Chevy?

Logansteno: Bought a VW? > Vince-The Roadside Mechanic
06/06/2014 at 12:06

None of the above. They'll be fine.

I do hope they re-open Saturn or Pontiac eventually. I miss seeing commercials and booths for them at auto shows. Both were just getting good.

Vince-The Roadside Mechanic > -Amateur
06/06/2014 at 12:06

Yes, I am curious why China goes nuts for Buick.

Vince-The Roadside Mechanic > Logansteno: Bought a VW?
06/06/2014 at 12:09

I miss Saturn and Pontiac but I don't think they will be reopening them. I would also like Chrysler to bring back AMC but that isn't happening.

Logansteno: Bought a VW? > Vince-The Roadside Mechanic
06/06/2014 at 12:11

Yeah, wishful thinking on my part.

But I do still see more 2009-2010 Pontiacs and Saturns around than I do Buicks, GMC, or Cadillacs of the same vintage.

Vince-The Roadside Mechanic > Logansteno: Bought a VW?
06/06/2014 at 12:12

That is true. I want a Solstice.

M54B30 > Vince-The Roadside Mechanic
06/06/2014 at 12:13

Why would they bother selling anything? They know the government is willing to just prop them up with millions upon millions of dollars if they ask.

Vince-The Roadside Mechanic > M54B30
06/06/2014 at 12:14

But when that happened part of the deal was that they downsize.

Logansteno: Bought a VW? > Vince-The Roadside Mechanic
06/06/2014 at 12:14

Solstice Coupe. Mmmm.

Kinja'd!!!

Vince-The Roadside Mechanic > Logansteno: Bought a VW?
06/06/2014 at 12:15

I prefer the convertible. They hold their value like nothing else.

Jayhawk Jake > Vince-The Roadside Mechanic
06/06/2014 at 12:27

Why? Why would they do that? What possible benefit could there be to that?

In really, really simplified terms if a GMC Sierra sells for 10% more profit than a Chevrolet Silverado, but only costs 2% more to make instead of making more Silverados, then getting rid of the Sierra makes no sense. Even if it sold for 3% more but cost 2% more to make you are still making 1% more money at the end of the day.

The only reason to get rid of GMC would be if the vehicles are sold at a loss, or if the division itself is losing money. It's a pure numbers game, and I'm sure they've run the numbers. It's possible that maintaining a GMC line of parts and GMC dealerships and GMC salesmen costs more than the increased profits of sticking with Chevy only, but if that was the case GMC would have died a long, long time ago.

Jayhawk Jake > Logansteno: Bought a VW?
06/06/2014 at 12:29

Never going to happen, unfortunately.

I would like for it to happen though. Bring me Opels! I WANT A GOD DAMN VXR!

Kinja'd!!!

Logansteno: Bought a VW? > Jayhawk Jake
06/06/2014 at 12:33

WE WOULD'VE GOTTEN IT AS THE ASTRA REDLINE. SOB.

Axial > Vince-The Roadside Mechanic
06/06/2014 at 23:34

I think GM needs to reorganize their brands, FCA-style.

Make Buick the go-to brand for the everyman. Need a car that's comfortable, fuel efficient, and reliable? Go to Buick. Buick is GM's oldest marque, so it sort-of makes sense to have them become the standard-bearer in the mass market.

Cadillac...keeps doing what Cadillac is doing.

Chevrolet, what do we do with you? We turn you into the performance arm of GM. All of GM's best performance cars come from Chevrolet. Why not extend that DNA into the more economical cars? RWD all the way, good handling characteristics, and engine options out the butt. Shoot, trucks are almost like performance vehicles, so they can keep the Silverado in there, too.

GMC sticks around to keep on selling tarted-up Silverados or SUVs until people stop buying them. Then we kill them.

Vince-The Roadside Mechanic > Axial
06/06/2014 at 23:35

You a genius.

Axial > -Amateur
06/06/2014 at 23:39

GM will never kill off Buick simply because Buick is the oldest marque and the one that started GM in the first place.

Axial > Vince-The Roadside Mechanic
06/07/2014 at 12:03

I try. :p

Seriously though, I think it could work. I know Buick has been traditionally sold as a higher-end car throughout its history, but where Buick is now is where GM's baseline quality needs to be. Instead of retooling Chevrolet to rise up, it's simpler to just call a spade a spade and let Buick swell into a mainstream market. Then you can retool the now smaller Chevrolet to cater to the more niche performance market.

Who knows, a Chevrolet centered on performance may turn into a US BMW...it's not like BMW started off as a high-end brand and even today it barely deserves the categorization.

Vince-The Roadside Mechanic > Axial
06/07/2014 at 21:47

I think Cadillac is US BMW.

Axial > Vince-The Roadside Mechanic
06/08/2014 at 02:41

I don't.

BMW is a pedestrian brand that made a car that had nice handling, and then people started adding to it. Cadillac was a luxury brand from the very beginning, beating out the likes of Mercedes and company because they saw the value in standardized parts, and is simply trying to reclaim its place among the elite marques.

tl;dr: BMW had to claw its way to leadership, Cadillac was born to lead.